Feeds

i-Mate has no friends

You can't play at the Alternative Investment Market

The essential guide to IT transformation

i-Mate, the Windows Mobile handset manufacturer, will be delisted from the Alternative Investment Market as the share price sinks below a penny and the CEO takes back control of the company.

The Financial Times reports that Jim Morrison, the colourful CEO who still owns more than three quarters of i-Mate, will take full control as the company withdraws from the AIM - itself a listing service for companies with insufficient heft for the London Stock Exchange.

Delisting will save the company over £1m a year. While its shares were once worth more than £2, they're currently languishing below a penny since halving in value in July, and again in September.

The problems should be familiar to anyone with experience in electronics' manufacture - quality control issues and the cost of bringing a range of devices to market with limited production runs of each. Manufacturing is all about volume, which presents a huge barrier to entry for new players unless they have the kind of marketing savvy, and economic muscle, that only Apple has been able to demonstrate in recent years.

i-Mate handsets have a feature set that competes with the best of breed, but without the volume the company lost $61m in the 12 months to March this year, and has already managed to lose $10.8m since then (to the end September).

Now the question becomes how long the company can survive - cash reserves are down to $11.2m, considerably less than the $29m they had back in March when the company was confident that reserves would last at least 12 months.

Once delisted the Chairman, Bernard Cragg, will step down leaving the rambunctious Mr Morrison to take the mantel of chair as well as CEO. He will then attempt to pilot i-Mate through the wreckage left by previous companies attempting to take on the oligopoly of handset manufacturers. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.